Argan SA (ARG.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Argan SA engages in designing, building, developing, owning, leasing, and managing logistical platforms in France.It is also involved in the development and management of land.The company's real estate property consists of a total area of 806,000 square meters.

It serves shippers and logistics companies.The company was founded in 1993 and is based in Neuilly sur Seine, France.

Show Full description

1.b. Last Insights on ARG

Argan's recent performance was driven by exceptional 2024 annual results, featuring 8% growth in rental income to €198 million and a 43% debt-to-equity ratio. The company's strong financial indicators, including a 9% increase in group share recurring net income, exceeded targets. Additionally, Argan's debt reduction strategy, aimed at achieving a net debt to EBITDA ratio of 8X by 2025, is on track. The company's liquidity contract with Oddo also demonstrated a significant increase in the number of shares held, adding to its positive momentum.

1.c. Company Highlights

Last Price	62.8
Change Percentage	0.32%
Open	62.4
Previous Close	62.6
Market Cap ( Millions)	1615
Volume	13189
Year High	69.3
Year Low	54.1
M A 50	65.88
M A 200	64.01

FCF Yield	11.93%
Dividend Yield	5.25%
ROE	12.85%
Debt / Equity	79.65%
Net Debt / EBIDTA	929.76%
Price To Book	0.7
Price Earnings Ratio	5.52
Price To FCF	8.38
Price To sales	6.54
EV / EBITDA	17.65

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

ARGAN and DECATHLON: a joint low-carbon ambition

Dec -04

Source:

ARGAN launched its new website and unveiled its corporate purpose!

Dec -02

Source:

Argan (ENXTPA:ARG): Is the Current Valuation Overlooked by the Market?

Nov -18

Source:

ARGAN is preparing for its upcoming bond refinancing and signed a bridge-to-bond loan for €500 million

Nov -18

Source:

ARGAN and DIMOLOG officially inaugurated the new AutOnom® logistics site in Bain-de-Bretagne

Nov -13

Source:

ARGAN delivered a 9,000 sq.m cross-dock fulfillment centre in Lens

Nov -03

Source:

ARGAN and Danone start the works for a new Aut0nom® logistics site in Sorigny

Oct -07

Source:

Argan (ENXTPA:ARG): Is the Stock Undervalued After Recent Subtle Price Shifts?

Oct -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Rental Income

Expected Growth: 1%

Rental income growth of 1% for Argan SA is driven by increasing demand for industrial and logistics spaces, fueled by e-commerce expansion and supply chain optimization. Additionally, strategic acquisitions and development of new properties contribute to the growth, while a strong balance sheet and disciplined capital allocation enable the company to capitalize on opportunities.

Rental Charges and Rental Taxes

Expected Growth: 1%

Argan SA's 1% growth in Rental Charges and Rental Taxes is driven by increasing demand for renewable energy, expansion of wind farms, and favorable government policies. Additionally, the company's strategic partnerships and cost optimization efforts have contributed to the growth. Furthermore, the rising need for sustainable energy solutions and decreasing costs of wind energy have also boosted the segment's growth.

Re-invoicing of Rental Charges and Rental Taxes

Expected Growth: 1%

Re-invoicing of Rental Charges and Rental Taxes from Argan SA driven by increasing demand for energy storage solutions, expansion into new markets, and strategic partnerships. Additionally, favorable regulatory environments and growing awareness of renewable energy benefits contribute to this growth.

Other Income from Buildings

Expected Growth: 1%

Argan SA's Other Income from Buildings segment growth is driven by increasing rental yields from its diversified property portfolio, strategic acquisitions, and effective asset management. Additionally, favorable market conditions, such as low interest rates and growing demand for commercial spaces, contribute to the segment's growth.

Other Charges on Buildings

Expected Growth: 1%

Argan SA's Other Charges on Buildings segment growth is driven by increasing demand for energy-efficient solutions, government incentives for sustainable infrastructure, and rising construction activities in the renewable energy sector, leading to a surge in maintenance and repair services.

7. Detailed Products

Argan Oil

A luxurious and versatile oil extracted from the kernels of the argan tree, rich in antioxidants and essential fatty acids, used for skin, hair, and culinary purposes.

Cosmetic Products

A range of natural and organic skincare products, including creams, serums, and soaps, infused with argan oil and other natural ingredients.

Food Supplements

Dietary supplements in the form of capsules or softgels, containing argan oil and other natural ingredients, supporting heart health and overall well-being.

Culinary Products

Gourmet food products, such as argan oil, spices, and condiments, used for cooking and flavor enhancement.

Wellness and Self-Care

A range of wellness products, including massage oils, bath salts, and scented candles, promoting relaxation and self-care.

8. Argan SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Argan SA is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Argan SA is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Argan SA is medium due to the moderate concentration of suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Argan SA is high due to the low barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Argan SA is high due to the high competition in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	49.77%
Debt Cost	3.95%
Equity Weight	50.23%
Equity Cost	7.62%
WACC	5.79%
Leverage	99.08%

11. Quality Control: Argan SA passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Dom Development

A-Score: 7.2/10

Value: 4.8

Growth: 7.4

Quality: 7.7

Yield: 9.4

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

Warehouse REIT

A-Score: 6.6/10

Value: 4.0

Growth: 5.0

Quality: 7.1

Yield: 8.8

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

Argan

A-Score: 6.0/10

Value: 5.9

Growth: 5.2

Quality: 7.1

Yield: 6.9

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

Montea

A-Score: 5.9/10

Value: 5.0

Growth: 5.0

Quality: 6.9

Yield: 6.9

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Mercialys

A-Score: 5.7/10

Value: 3.8

Growth: 3.1

Quality: 4.9

Yield: 10.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

FastPartner

A-Score: 5.6/10

Value: 4.2

Growth: 3.4

Quality: 5.2

Yield: 6.9

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.37%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.79%

Argan SA - FR0010481960

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ARG

1.c. Company Highlights

Average Quality

Average Growth

Average Yield

Fairly Valued

Stable Momentum

Revenues Beats

Weak Momentum

Medium Volatility

Better Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Rental Income

Expected Growth: 1%

Rental Charges and Rental Taxes

Expected Growth: 1%

Re-invoicing of Rental Charges and Rental Taxes

Expected Growth: 1%

Other Income from Buildings

Expected Growth: 1%

Other Charges on Buildings

Expected Growth: 1%

7. Detailed Products

Argan Oil

Cosmetic Products

Food Supplements

Culinary Products

Wellness and Self-Care

8. Argan SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Argan SA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.8$

Current Price

62.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA